Reply #57: Is India's outsourcing honeymoon over?

[54anickel]

Report: Labor shortage and wage inflation in outsourcing market has other countries in hot pursuit.

http://money.cnn.com/2005/08/23/news/international/india_outsourcing/index.htm

NEW YORK (CNN/Money) - Surprise! India's reign as the world's "Outsourcing King" may be slipping, even with its rock-bottom call center costs.

A new report from market research firm Gartner, Inc. warns that a labor crunch and rising wages could erode as much as 45 percent of India's market share by 2007.

Indian industry watchers acknowledge that the country's outsourcing industry -- its golden goose of the moment -- is indeed facing a "serious" problem.

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More importantly, the Gartner report cautions that a host of emerging countries such as the Philippines, Malaysia, Vietnam and Eastern European nations including Hungary and Poland, are also starting to challenge India's leadership in offshore business process outsourcing (BPO.)

Many U.S. and international companies maintain that outsourcing business processes such as customer service call centers, administrative and accounting processes to low-cost and low-wage countries like India helps to keep down their own cost of doing business.

more...

Pretty much expected as corps treat labor as simply another commodity. The great labor arbitrage continues...:eyes: